Pakistan Proposes “Plastic Credits” Market to Tackle Global Plastic Waste at UN Treaty Talks

At the fifth session of UN negotiations on a global plastics treaty in Geneva, Pakistan’s Federal Minister for Climate Change and Environmental Coordination, Dr Musadik Malik, proposed a novel “global plastic fund” to establish a marketplace for plastic credits, a mechanism aimed at addressing plastic pollution with cross-border accountability.

The concept would mirror carbon-credit systems: wealthier, high-consumption countries would purchase plastic credits, awarded for verified recycling, waste collection, or prevention efforts in developing nations, to compensate for their outsized plastic footprint. These funds would then be directed toward building recycling infrastructure, improving waste management, and integrating informal waste workers into safer, formal roles. 

Dr Malik argued that the current approach lacks a system to make polluting countries pay those disproportionately burdened by plastic waste, typically countries that consume very little. His call included ending the export of contaminated or unrecyclable plastic to countries like Pakistan, which often serve as dumping grounds due to limited recycling infrastructure.

Pakistan’s delegate urged powerful nations to recognize that environmental justice demands more than rhetoric. He expressed frustration with stalled negotiations and bureaucratic logjams, drawing parallels with the global energy sector. “Injustice is unsustainable,” he warned, highlighting the growing disconnect between affluent polluters and developing countries bearing the consequences.

What Are Plastic Credits?

Plastic credits are emerging as a market-based tool increasingly discussed as part of environmental financing models. In essence, one plastic credit represents a verified amount of plastic (often one kilogram) that has been properly collected and processed, via recycling, safe disposal, or other verified means, in a certified waste management project.

These credits are issued by third-party standards and registered on public ledgers to ensure traceability and auditability. Buyers, typically companies responsible for plastic waste, can retire credits to offset their plastic footprint, ideally channeling funds into infrastructure and environmental action. However, the system faces criticism over concerns of additionality (whether credited actions would have happened without the scheme) and greenwashing (allowing polluters to evade reducing plastic use themselves).

Global Debate on Plastic Credits

Globally, plastic credits are gaining traction as one result-based finance tool, but not without controversy. Some models have redirected funds toward recycling projects, while others have merely enabled co-processing (burning waste in cement plants), which releases harmful emissions.

Critics argue that buyers can claim “plastic neutral” status without reducing actual plastic production, and that credit schemes may substitute, which is insufficient for upstream waste reduction and reuse strategies. Still, organizations like the World Bank have supported plastic credit initiatives as a way to unlock funding for reduction efforts in underserved communities.

Why Pakistan’s Proposal Matters

Pakistan’s initiative targets structural inequities in global waste management. With per capita plastic consumption in Pakistan at just 7 kg/year, versus 150 kg in Western Europe, Dr Malik argued that the burden of plastic pollution falls unfairly on countries that barely contribute to it.

By proposing an Extended Consumer Responsibility (ECR) framework tied to consumption, not just disposal, Pakistan aims to shift financial responsibility onto major plastic consumers. The proposed plastic credit market, funded by these mechanisms, would support recycling systems in less-equipped countries, helping balance environmental, social, and economic needs. 

Broader Context: Pakistan’s Plastic Action Roadmap

Earlier in April 2025, Pakistan joined hands with UNDP and the World Economic Forum to launch the National Plastic Action Partnership (NPAP) Roadmap, outlining Pakistan’s strategy to reduce plastic pollution, advance circular economy principles, and strengthen waste governance.

For the “plastic credits” idea to gain traction, it must be adopted by a critical mass of countries and pushed onto the official UN plastics treaty agenda. Observers say the initiative may offer a practical tool to finance action—but only if implemented alongside strong commitments to plastic reduction and prevention.